The key tip from the senior traders this week focused upon the accurate identification of price patterns. By accurately using such patterns to define the criteria you use to enter a trade, you will learn to remain patient. Such patience and the correct application of price pattern identification will limit the number of times you find yourself quickly offside or worse getting stopped out. Traders should treat the market as a friend and let it guide their trading approach using the information that it provides. If you can build a relationship with the market and let it confirm/deny your own trading ideas, you will become more profitable.
The key to making money comes from being right*. However, sometimes in trading the most frustrating days come when you are right but you somehow manage to take a loss. This is why a trader’s timing is one of the most essential components of their trading artillery. A good example recently has been the way in which upon selling-off, the Italian 2 year has witnessed sharp, strong selling causing aggressive dips in the market. These dips have made staying long difficult and have increased the importance of entry timing. You must know your market inside out and have the ability to gauge when such dipa are lightly to appear**. Armed with this experience and information, you can adjust your technique to fit the conditions.
There is plenty to focus on despite this being a somewhat quiet week with regards to scheduled economic releases. Using the tools discussed in this week’s session, and in previous meetings, the traders should use this week as the perfect opportunity to enhance their price pattern identification and macro-market understanding.
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*) Being right is in this case objective with regards to price action.
**)”bread and butter” more in the future.
-written in English-